Abstract:
In a few years, the United States is likely to be the world's largest market for solar power, eclipsing Germany, which has taken the lead as a result of strong government incentives in spite of the relative paucity of sunlight in that country. A number of factors could make growth possible in the United States--especially changes in legislation that give utilities incentives to create large solar farms.

This year, Efird says, solar installations could double, reaching a gigawatt of capacity. "That's a big number," he says. "If you are in the solar business, you were talking watts 15 years ago, you were talking kilowatts 10 years ago, and you have trouble even talking megawatts today."

The growth had several likely causes, including decreasing prices for solar panels and installation costs, as well as increasing state incentives, which can make solar far more attractive. According to Harry Fleming, the CEO of Acro Energy Technologies in Oakdale, CA, these changes mean that the cost of a typical five-kilowatt rooftop solar system has dropped from $22,000 after state incentives are applied ($40,000 without them) to $16,000 in the last 18 months. Prices are expected to fall to $13,000 by the end of the year ($25,000 without incentives). "This is going to make solar a middle-class product," he says.